Start Small Business in UAE

Local businesses in Dubai have increased their surplus and earned large amounts of revenue right from the start thanks to a stable working environment, business-friendly legislation, and a friendly administration.

Setting up a small business in Dubai is simple, and if you follow the steps carefully, you might be up and running in two to three weeks. As a result, it’s a good idea to contact business experts who provide end-to-end company assistance at a cheap cost by handling everything linked to business formation in the UAE.

Information

The United Arab Emirates welcomes foreign investment and turns it into profitable ventures if you strive hard for success. Offering the most flexible rules and restrictions as compared to any country in the world, this federation has changed the surface of the market through innovative ideas and a large number of businesses.

When you plan to start a company in Dubai, the following must be taken into account by foreign investors:

• What is the minimum requirements for share capital?

• What is the structure of shareholding?

• What are the needs for licensing?

The process is quite complex and requires expertise and profound knowledge of the market. You can dream of a setup, but it is difficult to execute it without professional help. PRO Desk is a leading business consultancy in Dubai, providing top-notch services for business setup in the UAE.

Share Capital Requirements 

For various types, the share capital requisite are different depending on their operations and business.

• • Public Companies:

Minimum 10 million AED share capital

• • Investment & Insurance Companies:

Minimum 25 million AED share capital

• • Financial Institutions:

Minimum 40 million AED share capital

Before registration, Dubai LLC is not bound to deposit a share capital, as per Commercial Law. The shareholder can decide the minimum amount required to reach their goals. Whereas, joint stock companies have different requirements of minimum share capital depends on their business and operation.

Other Requirements

To start a company in Dubai, you have to

• Notarize and draft the memorandum of your company along with articles of association

• Register all the native workers with authorizes of social security and Ministry of Labor

• Open a corporate bank account

Type of License

Following type of licenses are usually issued by the Dubai Chamber of Commerce

Trade or Commercial Professional Industrial

Type of Ventures You can Choose From

• LLC or Limited Liability

• Public and Private Joint Stock

• Branch Offices

• Partnerships

• Subsidiaries

• Freezone establishment

General partnership

This type is available for UAE nationals only to start a company in Dubai. 2 or more partners can setup and establish a business who are responsible for the performance, profits and loss and all the liabilities related to the debts.

The dissolution can occur among partners in following events

• Bankruptcy

• Withdrawal

• Death

• Insanity

Limited partnership

This is also called Partnership in Commendam. Made up of 2 types of partner this venture offers

• • General partnership:

Partners must be UAE nationals and are liable for the debts

• • Limited partnership

The partners are liable up to the value of their capital contribution and will not pay debts other than that. The limited partner is not allowed to take management into hands.

Public Shareholding Company

Minimum 10 founders are required to start a company in Dubai under this type. Numerous partners can join the venture. If the government entity of the UAE is involved, the partners can be less than 10.

Minimum 3 Board of Directors are necessary and maximum 12 can take part. The chairman should be a UAE national.

Private Shareholding Company

This type of company should have minimum 3 shareholders with minimum 2 million AED capitals. General public will not get shares in this set up.

Limited Liability Company

This is the most widely used form to start a company in Dubai. It can be formed with the help of minimum 2 and maximum 50 shareholders. The liability is hedged against individuals capital invested. The minimum capital differs according to activities and jurisdiction.

Foreign partners can hold 49% of the shares.

Joint venture

Also referred as consortium, this type of organization is formed by 2 or more persons and legal entities. A UAE national can have the business on their name with minimum 51% share to start a company in Dubai.